## Understanding Monetary Policy: How Central Banks Control Your Economy
When you hear that the central bank has made a decision about interest rates, do you really know what it means? The **definition of monetary policy** is simpler than it seems: they are the tools that monetary authorities use to control how much money circulates in the economy and at what price (interest rates). In other words, it is the mechanism that keeps the financial pulse of a country.
### The Two Faces of Monetary Policy
Here comes the interesting part: central banks have two opposing strategies depending on what th